DATA FOR
"THE LABOUR MARKET CONSEQUENCES OF THE CANADA-U.S. FREE TRADE AGREEMENT"
   Canadian Journal of Economics, XXX(1), February 1997, pages 18-41.
                   by Noel Gaston and Daniel Trefler
		             July 30, 1997
			     
     The data are copyright.  Users are requested to cite the above paper.
Address correspondence to trefler@chass.utoronto.ca or
     Professor Daniel Trefler
     Institute for Policy Analysis
     University of Toronto
     150 St. George Street, Suite 707
     Toronto, Ontario
     Canada  M5S 3G6


The following file explains the format of the ascii
data file 'fta-pub.asc'.  The file was written to ascii using the
following SAS program.  For those not familiar with SAS, a quick
glance at the program should reveal how to read the data with almost
any software.  Series means are reported so that users can check
that they have read in the data properly.

********************* SAS PROGRAM *****************************
* Step 1. create fta-pub.asc;
filename out 'fta-pub.asc';
data can_upd2;
  set data.can_upd2;
  file out;
  put name $1-8 ' ' sic2 $10-11 ' ' year
      wc wa lc la mc ma rc ra ta t1 t2 e domc oc yc ya
      r ctc cta lwc llc lla le clwc cllc clla cle xdom xm xx xs;
run;

*Step 2. read fta-pub.asc using SAS;
data one;
  length name $8;
  infile out;
  *The next line is key.  A '$' indicates character format.;
  input name $1-8 sic2 year
      wc wa lc la mc ma rc ra ta t1 t2 e domc oc yc ya
      r ctc cta lwc llc lla le clwc cllc clla cle xdom xm xx xs;
run;
****************END OF SAS PROGRAM ****************************


---- DEFINITION OF VARIABLES, NUMBER OF OBSERVATIONS, AND MEANS------
YEAR      Year                                      278       1987.07
WC        average weekly earnings, $CA 1986         278   545.6982658
WA        Real earnings (/CPI), us, 1987$           278   370.7753201
LC        total number of employees, CA, 1000s      278      86586.80
LA        US employment, 1000s                      278     910598.20
MC        Canadian imports from US, $CA thou. 1986  278    3315199.67
MA        Canadian exports US, $CA thou. 1986       278    3907231.22
RC        canada, 91-day t-bill rate                278    10.2202940
RA        us, T-bill 3 month                        278     7.3664353
TA        US tariffs from DT                        278     3.2455036
T1        Canadian tariffs, %, 1979-87              147     7.4369048
T2        Canadian tariffs, %, 1987-91              152     4.0131579
E         US dollar noon spot in CDN dollars        278     1.2504659
DOMC      oc+mc-ma=candian domestic consumption     278    4121622.65
OC        gdp value of shipments), $CA thou. 1986   278    4713654.20
YC        canada, agg gpd, 1000s, 1986$             278     513928586
YA        Real GDP 1000s of 1987$                   278    4492088489

The following variables are defined below.
R                                                   278     2.8538587
CTC                                                 278    -0.4801259
CTA                                                 278    -0.2975971
LWC                                                 278     6.2702356
LLC                                                 278    11.0672803
LLA                                                 278    13.3110676
LE                                                  278     0.2218335
CLWC                                                278     0.0028941
CLLC                                                278    -0.0218752
CLLA                                                278    -0.0170815
CLE                                                 278     0.0075946
XDOM                                                278    -0.0213959
XM                                                  278     0.0221810
XX                                                  278     0.0429632
XS                                                  278     0.0054277

   * Let's use the following variable label convention: 
     c means percentage point change,
     cl means log change;

   r = rc - ra;      * Define the interest rate spread as r;

   cta = dif(ta);    * First diff US tariffs against Canada;

   * Splice together the 2 different Cdn tariff series;
    ct1 = dif(t1);
    ct2 = dif(t2);

   if year <  1988 then do; ctc = ct1; end;
   if year >= 1988 then do; ctc = ct2; end;


   * Do Log differences: Step 1 is define the logs,
                         Step 2 is difference the logs;
     lwc = log(wc); 
     llc = log(lc); 
     lla = log(la); 
     le  = log(e) ; 

         clwc = dif(lwc); 
         cllc = dif(llc); 
         clla = dif(lla); 
         cle  = dif(le) ; 


 * Freeman and Katz weightings;

 * First, calculate (DOM/S)dlnDOM = (dDOM)/S = XDOM;
   XDOM = dif(domc)/oc; 

 * Second, calculate (M/S)dlnM = XM;
   LNM = LOG(mc);
   LNMCH = dif(LNM);
   XM = (mc*LNMCH)/oc;

 * Third, calculate (X/S)dlnX = XX;
   LNX = LOG(ma);
   LNXCH = dif(LNX);
   XX = (ma*LNXCH)/oc;

 * Calculate ds = XS;
   LNS = LOG(oc);
   XS = dif(LNS);



****** A SAMPLE SAS PROGRAM FOR RUNNING SOME OF THE ***********
******     REGRESSIONS PRESENTED IN THE PAPER       ***********
*data one is a SAS file created from fta-pub.asc;
proc sort data=one; by sic2 year; run;

data two;  set one;
if year < 1981 then delete;
 
* 8 High Tariff industries;
If SIC2 = 38 or SIC2 = 34 or SIC2 = 30 or SIC2 = 22 or SIC2 = 31 
or SIC2 = 25 or SIC2 = 21 or SIC2 = 23 then HIGHT = 1;
 Else HIGHT = 0;

* 8 High Import industries;
If SIC2 = 33 or SIC2 = 32 or SIC2 = 31 or SIC2 = 36 or SIC2 = 30 
or SIC2 = 38 or SIC2 = 37 or SIC2 = 35 then HIGHM = 1;
 Else HIGHM = 0;

* 8 High Export industries;
If SIC2 = 25 or SIC2 = 38 or SIC2 = 26 or SIC2 = 33 or SIC2 = 29 
or SIC2 = 24 or SIC2 = 37 or SIC2 = 35 then HIGHX = 1;
 Else HIGHX = 0;

* 8 High Union industries;
If SIC2 = 10 or SIC2 = 21 or SIC2 = 35 or SIC2 = 33 or SIC2 = 20 
or SIC2 = 32 or SIC2 = 14 or SIC2 = 26 then HIGHU = 1;
 Else HIGHU = 0;
run;

proc means;
  var cllc clwc ctc cta XDOM XM XX r cle clla;
run;

* ---------------  All         industries ----------------------- ;
PROC REG;
 HIT: MODEL cllc clwc = ctc cta XDOM XM XX r cle clla / stb;
 
* ---------------  High tariff industries ----------------------- ;
proc sort; by HIGHT;

PROC REG;
 HIT: MODEL cllc clwc = ctc cta XDOM XM XX r cle clla / stb;
      by HIGHT;
 
* ---------------  High import industries ----------------------- ;
proc sort; by HIGHM;

PROC REG;
 HIM: MODEL cllc clwc = ctc cta XDOM XM XX r cle clla /stb;
      by HIGHM;

* ---------------  High export industries ----------------------- ;
proc sort; by HIGHX;

PROC REG;
 HIX: MODEL cllc clwc = ctc cta XDOM XM XX r cle clla / stb;
      by HIGHX;

* ---------------  High union industries ----------------------- ;
proc sort; by HIGHU;

PROC REG;
 HIU: MODEL cllc clwc = ctc cta XDOM XM XX r cle clla / stb;
      by HIGHU;